TY - JOUR
AU - Dlugosz,Jennifer
AU - Fahlenbrach,Rudiger
AU - Gompers,Paul
AU - Metrick,Andrew
TI - Large Blocks of Stock: Prevalence, Size, and Measurement
JF - National Bureau of Economic Research Working Paper Series
VL - No. 10671
PY - 2004
Y2 - August 2004
DO - 10.3386/w10671
UR - http://www.nber.org/papers/w10671
L1 - http://www.nber.org/papers/w10671.pdf
N1 - Author contact info:
Jennifer L. Dlugosz
Federal Reserve Board
20th Street and Constitution Ave. NW
Washington, DC 20551
E-Mail: jdlugosz@wustl.edu
rudiger
Paul Gompers
Harvard Business School
Baker Library 263
Soldiers Field
Boston, MA 02163
Tel: 617/495-6297
Fax: 617/496-8443
E-Mail: pgompers@hbs.edu
Andrew Metrick
Yale School of Management
135 Prospect Street
P.O. Box 208200
New Haven, CT 06520
Tel: 203/432-3069
E-Mail: metrick@yale.edu
AB - Large blocks of stock play an important role in many studies of corporate governance and finance. Despite this important role, there is no standardized data set for these blocks, and the best available data source, Compact Disclosure, has many mistakes and biases. In this paper, we document these mistakes and show how to fix them. The mistakes and bias tend to increase with the level of reported blockholdings: in firms where Compact Disclosure reports that aggregate blockholdings are greater than 50 percent, these aggregate holdings are incorrect more than half the time and average holdings for these incorrect firms are overstated by almost 30 percentage points. We also demonstrate that our fixes are economically and statistically significant in an analysis of the relationship between firm value and outside blockholders.
ER -